HomeMy WebLinkAboutOrdinance No. 2026-06 | Tobacco Retailer Permit Moratorium Urgency Ordinance | Adopted 08/03/2026
ORDINANCE NO. 2026-06
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF GILROY ESTABLISHING A TEMPORARY
MORATORIUM ON THE ISSUANCE OF NEW TOBACCO
RETAILER PERMITS CITYWIDE THROUGH DECEMBER
31, 2026
WHEREAS, the City of Gilroy ("City") is a municipal corporation duly organized as a
Charter City under the California Constitution and laws of the State of California; and
WHEREAS, the City Council has broad authority under the California Constitution,
Article XI, Section 5, the City Charter, and the City's police powers to legislate for public
purposes and for the general welfare, including, but not limited to, matters of public p eace,
health, safety, and welfare; and
WHEREAS, City Charter Section 200 provides that the City has the power to make and
enforce all laws and regulations with respect to municipal affairs, subject only to the restrictions
and limitations provided in the Charter and the California Constitution; and
WHEREAS, City Charter Section 602 authorizes an ordinance declared by the City
Council to be necessary as an emergency measure for preserving the public peace, health, or
safety, and containing a statement of the reasons for its urgency, to be introduced and adop ted at
one and the same meeting if passed by at least five affirmative votes; and
WHEREAS, on November 17, 2014, the City adopted an ordinance requiring all tobacco
retailers to obtain a "Tobacco Retailer Permit" to ensure that retailers comply with tobacco
control laws and City business standards (Ord. No. 2014-14; Gilroy Code Section 13.66 et seq.);
and
WHEREAS, California has adopted statewide restrictions intended to limit youth access
to tobacco products, cannabis products, and related products, and the City has a substantial local
interest in preventing youth access to such products and protecting the public health, safety, and
welfare of the community; and
WHEREAS, smoking is a leading cause of preventable disease and mortality, and
smokeless tobacco is associated with increased risk for several cancers; and
WHEREAS, staff has found a higher per capita concentration of tobacco retailers in the
City as compared to neighboring cities and county areas, including the City of Morgan Hill, the
City of Hollister, the unincorporated area of Santa Clara County, and San Benito County; and
WHEREAS, the prevalence and concentration of tobacco retail establishments may
contribute to adverse effects because of associated health risks and density in walkable areas
where minors frequent; and
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WHEREAS, social and economic burdens due to smoking-related illnesses place
demands on community health resources and increase healthcare costs, and cigarette butts and
packaging contribute to litter and environmental degradation and negatively impact the charact er
of the City; and
WHEREAS, tobacco retailer businesses can also be targets for theft and vandalism, and
may be associated with the sale of illegal cannabis products, drug paraphernalia, and other
products that encourage or facilitate unlawful activity; and
WHEREAS, hemp-derived products have also been found to be sold in tobacco retailer
businesses and smoke shops, with marketing aimed toward children featuring colorful packaging
designs and sweet candy flavors; and
WHEREAS, tobacco retail stores have been a source of unlawful activities in the City,
including in April 2025, when the California Department of Tax and Fee Administration
(CDTFA) and the City of Gilroy confiscated flavored tobacco products and hallucinogenic
psilocybin that are illegal to sell from certain local tobacco retail businesses within the city
limits; and
WHEREAS, on June 1, 2026, the City Council considered issues related to tobacco
retailer regulation and provided direction to not pursue a zoning amendment at this time, to
further review the proposed youth-oriented facilities provisions, and to bring forward a continued
moratorium on the issuance of new Tobacco Retailer Permits while tobacco retailer permit
regulations are under consideration; and
WHEREAS, the City is reviewing potential amendments to its tobacco retailer
permitting and licensing regulations, including, without limitation, standards related to youth-
oriented facilities, compliance requirements, enforcement, transfer, relocation, expansion, permit
issuance, and other measures intended to protect minors and the public health, safety, and
welfare; and
WHEREAS, because the City Council has directed that a zoning amendment not be
pursued at this time, this Ordinance is not adopted pursuant to California Government Code
Section 65858 and is not intended to operate as a zoning or land use moratorium; and
WHEREAS, the City Council finds that, absent immediate adoption of this Ordinance,
additional Tobacco Retailer Permits could be issued before the City has completed its review of
appropriate permanent amendments to its tobacco retailer permitting and licensing regulations;
and
WHEREAS, the City Council finds that issuance of additional Tobacco Retailer Permits
before completion of that review would frustrate the purpose of the City's ongoing regulatory
review and may worsen the adverse public health, safety, and welfare impacts describ ed in this
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Ordinance; and
WHEREAS, considering the foregoing findings and events that have taken place, the
City Council finds that there is a current and immediate threat to the public peace, health, safety,
and welfare, and that approval or issuance of additional Tobacco Retailer Permit s would result in
and exacerbate that threat; and
WHEREAS, the City Council further finds that immediate adoption of this Ordinance as
an urgency ordinance is necessary to preserve the public peace, health, and safety by temporarily
maintaining the status quo while the City reviews potential amendments to its tobacco retailer
permitting and licensing regulations; and
WHEREAS, on August 3, 2026, the City Council provided due consideration of all
evidence presented and provided in the entire administrative record and took testimony regarding
this urgency ordinance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION I. Recitals.
The above recitals are true and correct and hereby adopted as the City Council's findings.
SECTION II. Purpose and Authority.
In the interest of protecting the public peace, health, safety, and welfare of the residents of the
City of Gilroy, it is the purpose and intent of this urgency ordinance to place a temporary
moratorium on the issuance of any new Tobacco Retailer Permit, license, or other City
authorization required to commence a new tobacco retailer business within the City of Gilroy.
This Ordinance is adopted pursuant to City Charter Section 602, the City's police power, and the
City's authority to regulate City-issued tobacco retailer permits and licenses. This Ordinance is
not adopted pursuant to California Government Code Section 65858 and shall not be construed
as a zoning ordinance or land use moratorium.
SECTION III. Findings and Statement of Urgency.
The City Council hereby finds and determines that additional or future tobacco retailer
businesses in the City of Gilroy may constitute an immediate threat to the public peace, health,
safety, and welfare. The issuance of additional Tobacco Retailer Permit s under the City's current
regulations, before the City has completed its review of potential amendments to its tobacco
retailer permitting and licensing regulations, may further threaten the public peace, health, safety,
and welfare.
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This Ordinance is necessary as an emergency measure because new Tobacco Retailer Permits
may otherwise be issued before the City can complete its review of regulations related to youth -
oriented facilities, youth access, compliance, enforcement, permit issuance, transfer, relocation,
expansion, and other public health and safety standards. The immediate effect of this Ordinance
is necessary to preserve the public peace, health, and safety by temporarily maintaining the status
quo while that review is completed.
SECTION IV. Temporary Moratorium on New Tobacco Retailer Permits.
After the effective date of this Ordinance through December 31, 2026, no officer, employee,
department, commission, or other agency of the City shall accept for filing, process, approve, or
issue any new Tobacco Retailer Permit, license, or other City authorization required to
commence a new tobacco retailer business, or transfer, relocate, or physically expand a tobacco
retailer business, within the City of Gilroy.
For purposes of this Ordinance, "Tobacco Retailer Permit" means a permit issued pursuant to
Chapter 13, Article VIII of the Gilroy City Code, including Gilroy Code Section 13.66 et seq.,
and any successor provision governing the City's tobacco retailer per mitting requirements.
This temporary moratorium shall apply to new Tobacco Retailer Permits and to any permit
issuance that would authorize the establishment of a new tobacco retailer business, a new
permittee, a new location, the relocation of an existing tobacco retailer business, or the physical
expansion of an existing tobacco retailer business. This temporary moratorium shall not apply to
the timely renewal of a valid, existing Tobacco Retailer Permit for the same permittee and same
location, provided the permittee remains in compliance with all applicable laws, or to any permit
issuance required by state or federal law, court order, or as determined by the City Attorney.
This Ordinance shall not limit the City's ability to investigate, inspect, cite, suspend, revoke,
deny renewal of, or otherwise enforce against any tobacco retailer business or permittee under
any applicable law, ordinance, permit condition, or administrative procedure.
SECTION V. Violation.
Except as otherwise permitted under this Ordinance, the establishment of a tobacco retailer
business or operation of a tobacco retailer business without a required Tobacco Retailer Permit
within the City limits is declared to be a public nuisance. Violations of this Ordinance may be
enforced by any applicable laws or ordinances, including, but not limited to, injunctions,
administrative remedies, civil remedies, or criminal penalties under the Gilroy City Code.
SECTION VI. Direction to Staff.
During the term of this temporary moratorium, City staff is directed to continue reviewing
potential amendments to the City's tobacco retailer permitting and licensing regulations,
including further review of proposed youth-oriented facilities provisions and alternative
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regulatory approaches not requiring a zoning amendment, and to return to the City Council with
any appropriate recommendations.
SECTION VII. Severability.
If any section, subsection, subdivision, sentence, clause, or phrase of this Ordinance is for any
reason held to be unconstitutional or otherwise void or invalid by any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
Ordinance. The City Council hereby declares that it would have passed this Ordinance and each
section, subsection, subdivision, sentence, clause, or phrase thereof, irrespective of the fact that
any one or more sections, subsections, subdivisions, sentences, clauses, or phrases may be
declared unconstitutional or otherwise invalid by a court of competent jurisdiction.
SECTION VIII. CEQA Determination.
The adoption of this Ordinance is not a project subject to environmental review under the
California Environmental Quality Act (CEQA), or is exempt from environmental review under
the common sense exemption in CEQA Guidelines Section 15061(b)(3), because i t can be seen
with certainty that the temporary moratorium on the issuance of new Tobacco Retailer Permits
will not have a significant effect on the environment. The Ordinance temporarily preserves the
status quo while the City reviews potential amendments to its tobacco retailer permitting and
licensing regulations.
SECTION IX. Effective Date and Term.
This Ordinance is declared to be an urgency ordinance necessary as an emergency measure for
preserving the public peace, health, and safety within the meaning of City Charter Section 602.
This Ordinance contains a statement of the reasons for its urgency and may be introduced and
adopted at one and the same meeting if passed by at least five affirmative votes of the City
Council.
This Ordinance shall take effect immediately upon adoption and shall remain in effect through
December 31, 2026, unless earlier repealed or superseded by subsequent City Council action.
PASSED AND ADOPTED this 3rd day of August, 2026, by the following roll call vote:
AYES: COUNCIL MEMBERS: BRACCO, CLINE, HILTON,
MARQUES, RAMIREZ, BOZZO
NOES: COUNCIL MEMBERS: FUGAZZI
ABSTAIN: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
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APPROVED:
______________________________
Greg Bozzo, Mayor
ATTEST:
Kim Mancera, City Clerk
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CERTIFICATE OF THE CLERK
I, Kim Mancera, City Clerk of the City of Gilroy, do hereby certify that the attached
Ordinance No. 2026-06 is an original ordinance, or a true and correct copy of a City Ordinance,
duly adopted by the Council of the City of Gilroy at a Regular Meeting of said Council held on
Monday, August 3, 2026, with a quorum present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this Wednesday, August 5, 2026.
____________________________________
Kim Mancera
City Clerk of the City of Gilroy
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